Success in the Nanaimo BC real estate market comes from the willingness to negotiate. Let’s face it, sometimes the ideal home is hard to find. So, when it does pop up be careful not to lose it by making a mistake.
Home price negotiation mistakes
Most home negotiations start with the sales price of the home. So, we’ll being with some of the biggest blunders that a buyer can make when trying to negotiate the price of their new home:
Not understanding the motivation of the seller
Asking why the seller is selling helps a buyer push the seller’s hot buttons. For example, if they’re selling due to a new job out of town then offering a quick close in exchange for a price reduction can be a good negotiation tactic.
Not having a Plan B
Buyers who fall in love with a house without having other homes they equally like put themselves in the position of negotiating without options. On the other hand, buyers who have a Plan B can negotiate more strongly on the price, because if their offer isn’t accepted, they can always buy a different house.
Not asking the lender for a ‘custom’ pre-approval letter
Lenders are more than happy to give buyers a pre-approval letter for the amount being offered for the home instead of the amount the buyer is actually pre-approved for. This way, the seller will think that the offer price is the maximum a buyer can afford, and will be less likely to counter offer at the full listing price.
8 other common negotiation mistakes buyers make
Now, let’s look at some of the other ways that Nanaimo real estate buyers can fail when negotiating a deal on their new home:
#1. Threatening the seller with a take-it-or-leave it ultimatum instead of just stopping the negotiation and taking a breather
#2. Being too greedy instead of negotiating for a win-win and thinking about your needs as well as the seller’s
#3. Although price is important, there are other terms and conditions of the purchase contract that can be negotiated, such as date of closing and length of the home inspection contingency period
#4. Coming on so strong and trying to take control of the negotiation right from the start can cause a seller to feel threatened and back out of deal completely
#5. Being unprepared for a negotiation by forgetting to practice what you’ll say, and by not getting advice from your real estate agent who negotiates for her clients every day
#6. Inflating little things into big deal breakers can make the seller feel like they’re being gouged
#7. Getting emotional, taking the negotiation personally, or negotiating for the sake of negotiating instead of keeping your eye on the big picture
#8. Ignoring how long the house has been on the market – especially if the home has been listed for longer than the average days on market – is a good guide to how motivated the seller might be
Why buyers shouldn’t always expect a counter offer
Expecting a seller to counter offer the buyer’s offer can be a big mistake. For example, low balling the purchase price or insulting the condition of the home can cause a seller to reject the offer completely instead of playing the negotiation game.
Counter offers also take time, which can be good for the seller but not so good for a buyer, especially if the real estate market is hot. With time on their side, the seller’s agent can shop around for more motivated buyers while the counter offering goes back and forth.
Negotiating for the home of your dreams
As the saying goes, you can get more with sugar than spice. Offending the seller, either accidentally or on purpose, more often than not can lead to an outright rejection of your purchase offer.
By being realistic with a home negotiation, buyers will find the process goes much more smoothly. And remember, there’s always more to negotiating a home purchase than just the sales price.